Bitcoin's Blood Rain: $1 Billion in Liquidations and the Pattern Pointing to $62k

The blood rain in the cryptocurrency markets has arrived in all its harshness. Bitcoin has experienced a significant crash, with the price dropping to $71.06K, recording a 7.03% decline in the last 24 hours, while trading volumes reach $1.61 billion. What we are witnessing today is not just a minor correction but a severe volatility event that has left scars on the portfolios of thousands of investors.

How $1 billion evaporated in just 24 hours

The blood rain intensified when the price touched critical psychological zones between $92k and $95k, triggering a cascade of liquidations. According to market data, between $600 million and over $1 billion in long positions were liquidated within a 24-hour period, causing a devastating domino effect.

Traders operating with excessive leverage were the hardest hit. When automatic sell-offs were triggered at these psychological levels, the decline deepened far more than most expected. The futures market literally “shook” the overexposed speculators, generating panic on social media and spreading uncertainty among long-term investors.

The Bear Flag warns: critical support at $87k

Technical analysis paints a concerning scenario. Charts show the formation of a “Bear Flag” or bearish pattern 🚩, which in theory points toward $62k if containment at certain levels cannot be maintained. The orange line visible on the charts represents the “mast” of a previous brutal fall, while the small upward red channel where the price is operating now suggests an attempt at recovery, but fragile.

The vital support is located between $87k-$88k. If Bitcoin loses this level and fails to rebound strongly, the bearish pattern theory would be confirmed, pointing toward an extreme scenario of $62k. It’s an ambitious but mathematically possible target if selling pressure persists.

Macroeconomic factors intensify downward pressure

Not all blame lies with reckless speculation. Outside, in the real world, the macroeconomic environment plays a decisive role. Geopolitical tensions, erratic movements in Treasury bonds, and volatility in stock markets have created a contagion effect. Large institutional investors have rushed to seek refuge in traditional gold, treating Bitcoin as a pure risk asset rather than a defensive hedge.

BTC has behaved in sync with equities, falling when traditional markets turn red. This high correlation with risk assets has amplified the blood rain, leaving Bitcoin without its usual independence in times of global stress.

Rebound or continuation of the fall? The moment defines the destiny

Despite the panic, there are signs that not all is lost. Bitcoin rebounded near $89.5k at certain moments, indicating that there is capital ready to buy at these depressed levels. Social media sentiment is deeply divided: some proclaim the end of the bullish cycle, others believe it is simply a necessary technical pause before continuing.

The key to calming trading algorithms and avoiding a downward acceleration is for Bitcoin to stabilize above $90k. If this goal is achieved, it could mean the consolidation of a temporary bottom. Otherwise, the $62k of the Bear Flag pattern might not seem so far away. In this crucial moment of decision, patience is more valuable than any speculative position.